Not upheld: Irresponsible lending complaint against OAKBROOK FINANCE LIMITED

Decision detail

Summary

Miss S complained that Oakbrook Finance Limited irresponsibly provided her with two loans: £1,200 in May 2024 and £4,000 in May 2025. The ombudsman examined both lending decisions and found that Oakbrook's pre-lending checks were reasonable and proportionate in each case. For the first loan, Miss S's verified income of £22,000 and existing debt of £2,223 showed she was not over-indebted. For the second loan, despite increased debt to £7,687, Miss S's income had risen to £35,400 with approximately £1,290 disposable income remaining. The ombudsman found no evidence that Miss S was unable to sustainably repay either loan and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Oakbrook's pre-lending checks were reasonable and proportionate for both loans given the credit amounts offered. For the first loan, Miss S's income of £22,000 with verified current account data, existing debt of £2,223, and repayments of around £96 showed she was not over-indebted. For the second loan, despite increased debt to £7,687, Miss S's income had increased to £35,400 with approximately £1,290 disposable income remaining after all costs and commitments. The successful repayment of the first loan and absence of adverse credit data in the preceding six months did not raise concerns requiring further investigation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website